By Angela Gonzales | Phoenix Business Journal
Out-of-state investors are swooping into town to pay big bucks for apartments as the landscape gets even more competitive.
Salt Lake City-based Millburn & Co. paid $178.5 million for the 832-unit Heritage at Deer Valley, making it the highest sale price for a single multifamily community in Phoenix history.
Toronto, Canada-based Oxford Properties Group made its Arizona debut, paying $146 million for the 523-unit Ten01 on the Lake in Tempe, said Asher Gunter, executive vice president of institutional properties for CBRE. Gunter, along with Tyler Anderson, Sean Cunningham and Matt Pesch brokered the deal.
“The buyer assumed an existing loan on the property,” Gunter said.
The CBRE team also brokered the Heritage deal, representing the seller, Priderock Capital Partners.
Jeff Turkanis, head of U.S. Residential at Oxford, said the Phoenix market, along with Atlanta, Austin and Dallas, will be key to Oxford’s plan to build out its U.S. portfolio to 15,000 units by 2025.
“We have a very disciplined approach to our market selection process and Phoenix has been a market that has been on our radar for awhile,” Turkanis said.
Watching the Phoenix market’s resilience during the coronavirus pandemic, Turkanis said the local economy is well diversified and has a strong underpinning of growth-oriented industries.
“We believe Phoenix, driven by favorable demographic trends and healthy employment/income growth expectations, will be one of the stronger performing metro areas across the country,” Turkanis said.
Jake Millburn, principal and executive vice president of Millburn & Co., said this is the real estate investment firm’s ninth acquisition over the past five years. Of its 7,500 units valued in excess of $1.5 billion, upward of 1,600 units are in metro Phoenix.
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